Nifty Bank - Inflation in the land of rising Sun!

19 Ogo 2022

Japan fight on bringing inflation is more than three decades old. It finally rears its head in today's data rising YoY 2.6%. They were fighting to bring it to 2%. It is like inflation trying to conquer the world. Mean while Turkish Central Bank typical of its style cuts interest rates while fighting inflation around 70%. This clearly sends contracting signals as each policy makers addresses domestic challenges than economic rational. We are no different. USDINR rears its head once again, but for the act of GOD it would have crossed 79.70 and hit run towards 80. It is not if it remain question of when. Yields bottom, Crude Bottom, Dollar Bottom so equity top?. One has to wait and see how it unfolds. Clearly not an area of incremental longs. 40000 defies the bulls and bears. 39000 attracts bulls. Stay in that range till it resolves.